In a statement to the Hong Kong bourse, Man Wah said it has no undisclosed debt and stands by its 2017 annual report. Its controlling shareholder holds 63.51 percent of the company and none of those shares have been pledged to third parties, it said.

Man Wah said it had instructed its legal advisers to make a formal complaint against Muddy Waters to the regulator, the Securities and Futures Commission.

Muddy Waters was not immediately available for comment.

Trading in Man Wah shares, which were suspended on Wednesday afternoon, will resume on Friday. They fell more than 15 percent on Wednesday after Muddy Waters said it was shorting the stock, accusing it of financial irregularities. (Reporting by Donny Kwok; Editing by Muralikumar Anantharaman)